Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

What's Next: The Great Customer Expectation Gap

383 views

Published on

Is your marketing creating an ‘Expectation Debt’, and are your competitors now responsible for your customer's experience?

Customer Experience has taken great leaps forward as brands embrace the truth that good customer experience costs less than bad customer experience. However, for most businesses customer trust is eroded as expectations of experience fail to match the reality, forcing them to face their own ‘negative experience equity’.

Published in: Marketing
  • Be the first to comment

What's Next: The Great Customer Expectation Gap

  1. 1. What’s Next: The Great Customer Expectation Gap How Brands Avoid Negative Experience Equity Powered by
  2. 2. Welcome José Arteaga Creative Digital Strategist
 Ogilvy Consulting Dickon Laws Head of Experience Design
 Ogilvy UK Lau Moyano Experience Strategy Director
 Ogilvy UK
  3. 3. Tell us where you are dialing in from! What’s the weather like in your city?
  4. 4. Do you want this deck? It will be available for download shortly after the webinar on: slideshare.net/socialogilvy And the recording up on facebook.com/OgilvyConsulting
  5. 5. A Brief History of Economic Progress The Great Expectation Gap Experience Debt & Negative Experience Equity 5 The 5 Drivers Of The Expectation Gap Negative Bias & Peak End Rule CX Audit & Other Services Today
  6. 6. Good Customer Experience Costs Less Than Bad Customer Experience Consumers Place More Value in Satisfying Experiences Than Satisfying Products Remixing Two Established Truths
  7. 7. March 8, 2019 A Brief Birthday Cake History of Economic Progress* *Borrowed from B. Joseph Fines and James H Gilmore, first published in Harvard Business Review in 1998 Experience Economy Mum/Dad outsource the entire experience to the Soft Play centre (who include a Cake!) Service Economy Mum/Dad order the cake to be delivered from the store Goods Economy Mum/Dad buy a cake mix from the store (God bless Betty Crocker!) Commodity Economy Mum / Dad make birthday cakes from scratch (flour, sugar, butter, eggs)
  8. 8. When in reality business is ok with here 26% Employees who think their business fails to delivers on its brand promise [Forbes] Precedence brings customers here Brand promise makes customers believe they are here The Experience Scale Meaningful Pleasurable Convenient Satisfactory Below average Frustrating Unquestioned Habitual Belief Benefit of Doubt Skepticism Pessimism The Trust Scale In The Experience Economy The Promise and The Precedence Are Everything The Expectation Gap
  9. 9. 9 The Expectation Gap The distance between a customers expectation of a product or service and the reality of experiencing it
  10. 10. Source: Edelman Trust Barometer 2018 -1% +7% Global Trust Index remains at distrust level 20 of 26 markets are distrusters, up +1 from 2017 -9% The Trust Crisis is Making The Task of Building Brands and Reducing the Expectation Gap Even More Challenging
  11. 11. Source: Prophet Relevant Brands 2018 Top 10 Brand In The UK 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 2016 2018Those Brands That Remain Indispensable and Relevant Continue to Dominate The Experience Economy
  12. 12. Source: Prophet Relevant Brands 2018 Top 10 Brand In The UK 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 2016 2018Those Brands That Remain Indispensable and Relevant Continue to Dominate The Experience Economy
  13. 13. March 8, 2019 Negative Experience Equity Expectation Debt A The Expectation Gap B Expectation Brand Promise to Customer Customer Experience Reality Under Deliver Over-Promise Minimum Expectation “The last, best experience that anyone has anywhere becomes the minimum expectation for the experiences they want everywhere.” Best Experience The Cost of Missing the Landing of Your Customers Expectations
  14. 14. DEMONSTRATORS DEBTORS DISRUPTORS
  15. 15. What ‘Expectation Debt’ does a brand owe you? 15 ASK THE AUDIENCE TIME ANSWERS IN THE CHAT!
  16. 16. March 8, 2019 The 5 Drivers Of The Expectation Gap 5 Human Centred Design Business goals to customer needs ratio is unbalanced From 70:30 To 50:50 4 Internal Integration No cross-functional collaboration & information sharing 3 Business Integration Your business strategy & technology misaligned or lack of investment 2 The Brand Promise ‘Over-Juicing’ your creative communications work 1 Customers Experience Precedence Your culture not changing as fast as your external environment and customer expectations
  17. 17. 17 Lau Moyano Experience Strategy Director
 Ogilvy UK Over to Lau…
  18. 18. March 8, 2019 Negative Experience Equity Expectation Debt A The Expectation Gap B Expectation Brand Promise to Customer Customer Experience Reality Under Deliver Over-Promise Minimum Expectation “The last, best experience that anyone has anywhere becomes the minimum expectation for the experiences they want everywhere.” Best Experience Two Key Behavioural Bias That Can Help Bridge The Expectation Gap Negative Bias Peak-End Rule
  19. 19. NEGATIVE BIAS WHAT IT MEANS Humans subconsciously place more significance on negative events than positive ones, affecting behaviour and cognition. A common balance of positive to negative is for humans and found that it is consistently 5:1* STEP 1
  20. 20. Counteracting negative bias by finding and removing pain-points STEP 1 Covering all touchpoint to understand… • Expectations • Precedences • Friction points
  21. 21. PEAK-END RULE STEP 2 WHAT IT MEANS We judge our experiences almost entirely on how they were at their peak (high or low) and how they ended, regardless of the quality of the experience.
  22. 22. 22 The “wow” factor of an experience The “longevity” factor of an experience Leverage the ‘Peak End Rule’ to design experiences that will improve the overall perception STEP 2 • What is the duration of the impact of this feature? • How memorable is the intervention? • Can I use it multiple times? • Does it grow or improve over time? • Does it open new possibilities in future? • Does it exceed expectations? • Is it novel for the customer? • Is it novel within the category? • Is the idea something expected or surprising? • How personal / relevant does it feel? PEAK-END RULE
  23. 23. 23 The “wow” factor of an experience The “longevity” factor of an experience This can help throughout the CX design process STEP 2 • What is the duration of the impact of this feature? • How memorable is the intervention? • Can I use it multiple times? • Does it grow or improve over time? • Does it open new possibilities in future? • Does it exceed expectations? • Is it novel for the customer? • Is it novel within the category? • Is the idea something expected or surprising? • How personal / relevant does it feel? Discovery Synthesis Ideation Measurement
  24. 24. March 8, 2019 24 And can help balance a business view with a customer-centric view Impact Effort Peak (“Wow effect”) End (“Longevity”) +
  25. 25. Support from Ogilvy Consulting to help brands bridge the expectation gap A PROVEN FRAMEWORK AND METHODOLOGY THAT EVALUATES OVER A 100 DATA POINTS, APPLIED AT EVERY STAGE OF THE DESIGN PROCESS, TO HELP BRANDS; • Diagnose what key forces are driving the expectation gap • Highlight relevant friction points and expectations of our consumers • Design experiences that will prevent negative bias and exceed expectations • Create a development roadmap that drives organisational change, balancing business needs with a consumer-centric view Ogilvy Consulting CX Audit
  26. 26. A Brief History of Economic Progress The Great Expectation Gap Experience Debt & Negative Experience Equity 26 The 5 Drivers Of The Expectation Gap Negative Bias & Peak End Rule CX Audit & Other Services In Summary Consumers Place More Value in Satisfying Experiences Than Satisfying Products Your Competition Is Now Responsible for Your Customers Experience Aim To Balance the Promise & The Precedence Don’t Let Your Customers and Your Culture Drop You in it Leverage the ‘Peak End Rule’ to design experiences that will improve the overall perception Unashamedly….We can help!
  27. 27. Questions?
  28. 28. Thank you.

×